The innovative product offering makes Noor the first Islamic bank in the UAE to offer a fully fledged product in the precious metals segment. The initiative has been launched in partnership with the Dubai Multi Commodities Centre (DMCC), which designed and launched the UAE gold bullion coins in April 2012.
Omar Anwar, Acting Head of Treasury, Noor Islamic Bank, said: “Gold is primarily a long-term investment that holds the potential to offer multiple returns. However, most investors are wary of gold securities, which do not give the same assurance as physical gold as there is always a question on the ratio of global gold stocks and the issuance of certificates. On the other hand, storing physical gold has always posed a critical concern for investors. With the option of storage facilities, our product effectively extends a safe investment option to individuals looking for profitable yet secure avenues to park their funds.”
The coins are minted by Swiss refinery Argor-Heraeus, one of the world’s largest processors of precious metals and are accredited by DMCC’s Dubai Good Delivery Standard (DGD).
Noor also offers gold kilo bars for larger trade quantities, which could be sourced from suppliers of choice including Argor-Heraeus, Swiss Gold, Emirates Gold and Al Etihad Gold Refinery.
Ahmed Bin Sulayem, Executive Chairman, DMCC, said: “We congratulate Noor Islamic Bank on becoming the first Islamic bank distributor of the UAE Gold Bullion Coins. These coins celebrate the accomplishments of the UAE’s visionary rulers. We are proud to see the UAE Bullion Coins further contribute to the growth of the Islamic economy in line with His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai’s Islamic Economic Strategy to make Dubai the Capital of Islamic Finance.”
As a value-added service, Noor is also offering storage custody through an insured third party vault operator. In return, clients will be provided with certificates for physically-backed gold product. Alternatively, clients can take delivery of the gold, both coins and bars, through an agreed third party delivery method. The bullion can also be collected directly from the vault with prior confirmation.
Gautam Sashittal, Chief Operating Officer, DMCC, said: “DMCC is proud to partner with institutions such as Noor Islamic Bank, which are committed to developing innovative Islamic banking solutions. Noor represents the culture of change that is taking place in Dubai by incorporating bullion trading into its activities.”
Noor’s initiative to offer bullion coins and bars comes in response to the vast demand for the precious metal in the UAE. In 2012 alone, gold sales in the form of jewellery, bars and coins investment totalled US$2.777 billion (AED10.2 billion), according to the World Gold Council.